Reimagine the Future of Grocers with Artificial Intelligence

Future is here for grocers. Now grocers can exactly count how many employees they need in a shift and which products should be discounted. Does it sound high-tech? But it is possible with Artificial Intelligence. AI freed up humans to do what they’re best at, negotiating and AI took other burdens such as analyzing enormous amounts of data. AI is going to be a huge disruptor for the grocery business because it has the potential and Amazon unveiled ‘Amazon Go’ (an AI-powered grocery) in early 2017.

Technology vendors begin applying artificial intelligence in the retail sector to the unique problems of grocery. In the next years, AI will have a significant impact on the grocery industry believed by 68% of industry executives.

What AI can do?

The predictive capabilities of AI can play an important role for grocers in forecasting inventory needs. AI can also analyze customer behaviour, internal and external factors and determine prices of products. Delivery services can also be controlled with the help of AI. AI can automate the whole system of delivery from registering an order to assign shipping.

Loss prevention and many other services could be availed by AI after implementing AI in grocery. AI can prevent fake orders and fake transactions that can help in preventing loss. It is not only beneficial for grocers in this industry but it is also very beneficial for shoppers because AI could contribute to increase

convenience by reducing the interaction of customers with employees and automating payment methods.

Pricing and promotion power:

AI can increase a retailer’s sale by improving pricing and promotions. Automatically it can reduce and increase the price by calculating multiple factors involved in pricing. AI resolved the issues in pricing and promotion by introducing the process of selection of product to promote. Ai helps in deciding the prices that should be charged. It resolved the main issue of which products should be in the store by calculating the sales of various products.

Supply chain optimization:

Artificial Intelligence can run the business more smoothly by forecasting the supply chain for inventory. AI can also predict demands by analyzing various previous stats. AI can increase sales by keeping the right products on shelves and by reducing out-of-stocks errors. Wholesalers are using AI for their demand forecasting while distribution centres are fulfilling orders with the assistance of AI.

This technology will analyze problems and predict outcomes and it is expected that by 2020 half of the supply chains will use AI, according to market research firm IDC.

Cashier free payments:

Involvement of AI in grocery stores is accepted by people and cashier-less grocery stores are becoming mainstream as standing in line for groceries is a very hectic and time taking job.

Amazon Go is the best example of the cashier-less store where consumers enter the store, buy their products and leave the store and payment is automatically deducted from their Amazon account. It uses Artificial Intelligence with the help of cameras and shelf sensors to understand the items customer took.

H-E-B Go of San Antonio and Walmart in Shenzhen are other examples of it.

How retailers will use AI:

In 2017 BRP Consulting surveyed 500 executives in North America and they found that retailers who plan to use artificial intelligence in the next 3 years are 45%. Various executives had various priorities:

1- 55% said they will optimize the customer experience with the help of AI.

2- 42% said they will create a seamless experience across their channels.

3- 45% were found interested in improving the mobile shopping experience.

5- 50% said they will improve customer loyalty.


AI has the potential to benefit grocers in 3 major ways that include customer experience, operating efficiencies and improving security. AI algorithms are easy to use identity verification services for your product and can prevent criminals from walking-in and creating trouble in your store. By automating the system and reducing human interaction it can improve efficiency. If your system is efficient it will obviously enhance the customer experience.